Semiconductor Assembly Test Services Market

A recently added report by Persistence Market Research (PMI), titled, “Global Market Study on Semiconductor Assembly and Testing Services (SATS): To be Driven by Increasing Demand for High-End Packaging Solutions,” throws light on important aspects of the market. It offers information on the various growth drivers and restraints molding the growth path of the market, its size, and prospects going forward. It carefully examines the competitive dynamics in the market as well by leveraging different popular analytical tools.

The global semiconductor industry is extremely volatile in nature, in which the prominent companies are fabless firms that focus on designing better products and use their resources to improve performance of the chipsets or ICs. Hence, most of the services pertaining to assembly, testing, and packaging of semiconductors are outsourced by fabless companies to third parties called outsourced semiconductor assembly and test services (SATS).

Another reason explaining the adoption of semiconductor assembly and testing services (SATS) is the switch of semiconductor processing technology to the larger wafers and reduced feature sizes, which has upped expenditure since it requires building an ultra-modern wafer fabrication factory equipped with cutting-edge machines. High capital expenditure required in wafer fabrication and its packaging and testing has compelled semiconductor companies to outsource work to SATs so that they are able to devote more time to their core business.

In terms of application, the main segments of the global semiconductor assembly and testing services (SATS) market are communication, consumer electronics, computing and networking, automotive electronics, and electrical. In 2014, the consumer electronics application segment was valued at US$3.74 bn.

Geographically, the key segments of the global semiconductor assembly and testing services market (SAPS) are North America, Latin America, Taiwan, Europe, and the Middle East and Africa.